Ogra recommends Rs 12.52/kg raise in CNG price

ISLAMABAD - Relief given to the masses by a court order has proved short lived as Ogra has finally recommended a raise of Rs 12.52/kilogram in the price of CNG while the audit firm, recommending deregulating the prices of the commodity as per international practices, has proposed Rs21.39/kg increase in CNG rate.

Copy of Ogra’s price determination formula of CNG and the audit report of an independent auditor named Owais-Hyder-Noman-Liaqat Chartered Accountants, available with TheNation, confided that the chartered firm has proposed to set the operating cost of CNG stations at Rs 26.66/kilogram. The auditor has suggested massive raise of Rs21.39/kg in the price of the commodity for the consumers of Region-1 while Rs20.43/kg increase for Region-11. However, the Ogra, in its submission to the court, has recommended Rs12.52/kg increase for CNG consumers of Region-1 and Rs11.56/kg for the consumers of Region-11.

The auditor, in its report submitted to the apex court, has asked to deregulate the price of the commodity by leaving price determination on market forces. Resultantly, there would be different prices of CNG in the country if the court accepts its (the auditor) suggestions for implementation in the country. The audit firm has also suggested that the CNG retailer not the consumers should face expenditures of diesel generator. The auditor, in its proposals about the determination of expenditures of CNG stations, has asked to set the operating cost at Rs13.33/kg, human resource cost at Rs2.59/kg, fees at Rs0.16/kg, repair and maintenance of machines at Rs1.94/kg, civil works at Rs0.24/kg, oil and lubrication at Rs0.81/kg, rental at Rs2.81/kg, miscellanies at Rs 2.76/kg, and depreciation of CNG station should stand at Rs2.02/kg.

Similarly, Ogra, in its report, has recommended setting the operating cost at Rs6.86/kg, human resource cost at Rs2.12/kg, fees at Rs0.16/kg, repair and maintenance of machines at Rs1.94/kg, civil works at Rs zero, oil and lubrication at Rs0.81/kg, miscellanies at Rs zero, and depreciation cost should stand at Rs2.02/kg in the country.

It is pertinent to mention that the apex court would analyze the Ogra formula and audit report on 19th November. The Supreme Court (SC) would make increase in the price of CNG either in the light of the suggestion of auditor or Ogra.